I have gotten the same types of files for some shows. What I have done is open them in DVD2AVI, which saves as a .d2v file that can be read by TMPGEnc which I use to encode to an mpg2 file for authoring.
IF the original is letterboxed, you will need to use the following setting for TMPGENC to encode properly:
Set (on advanced tab) source 1:1 VGA, keep aspect ratio 2.
Set (on video tab) 720x480 4:3 display.
When you open your avi in DVD2AVI, you will want to decode the audio to WAV by setting this in the audio drop box, then select where you want the files it creates to be saved. Once that is done use the .d2v file it creates for the video input in TMPGEnc, and for the audio input use the WAV file it created.
There is a way to use the original AC3 if you want, but it will require you to use TDA 1.6 to multiplex, I can tell you how if you wish, but be warned that sometimes TDA gets the audio out of synch when it does this.
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